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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Ausdauer who wrote (4519)	1/26/1999 10:02:00 PM
From: David W. Tucker	Respond to of 60323

Ausdauer: I actually feel strongly that playing around with options is extremely risky and there are very few people that should mess with it. I was not writing covered calls this week. I just buy and sell them (trade them). Some people think covered call writing is a great way to produce income, but those who try it often find that they lose substantial money when the underlying stock goes down. I recommend owning shares of Sandisk long, which I do. However, I just recently bought into some call options because I felt the short term prospects were very good. I only do this a couple times a year and when I do I turn into a nervous wreck. This is because of the time factor. There's big money to be made in options, but it is extremely risky, much more so than the Wade Cook's of the world would lead you to believe. Every one of his methods has a fatal flaw in it. Sometimes I'll trade options on huge companies that I can't afford to buy stock in. Can't afford to buy AMZN, but I can take control of 500 shares using options. In summary, it's risky and I don't recommend it unless you really have some experience and have very strong feelings about where a stock is headed during a very specific timeframe. And you have to be willing to lose the money you invest. dave